SampleSuccess Story: Local Telecommunications Company

(All company and individual names changed)

Option 800 Service DeliversInstant Revenue Boost!

Customers Delightedwith 50% Reduction in LD Expenses

MelissaWarren, Tennessee’s MIS Manager for XYZ Mobility, recalls the day when LaurieCheatham, MIS Support Specialist (who does bill analysis for TN’s call center),came to her and asked, “Did you realize that roughly 60% of our long-distance800 expense is coming from calls within our local calling areas?” Warren contacted XYZ and asked ifthere was any other option to re-route the traffic tothe local numbers. As it happens, XYZ was just rolling out Option 800 servicefor this very reason and it looked like a fit.

CustomersSimply Choose XYZ Corp.

As John Ward, Toll Product Development Manager for XYZ, explains, “Bellunderstood that they were losing a lot of interlata revenue because all theircustomers’ 800 calls were going through other long distance carriers. Option 800 simply presentsthe customer with another option of a toll-free provider: XYZ Corp..”

Therewas just one problem. After crunching the numbers with the XYZ Corp. accountexecutive, it seemed “too good and too easy to be true.” As Ward observes, “800service is the lifeblood of a call center. Price is anissue, but the first priority is to keep the calls flowing and servicedproperly. Something new and unproven that could potentially, say, shut down acenter for a day is going to be scrutinized very closely.” Warren, along with Tennessee’s Business OperationsDirector, John Sapp, persisted and was finally given the green light. As she recalls, “When the bills started coming in, we couldn’tbelieve how good it looked.”

55% Savings onLong Distance!

Howgood? In July 1999, Warren’s XYZ Mobility call centerpaid roughly $55,000 to AT&T for 800-long distance service. By December,that figure plunged to $25,000, nearly a 55% savings – with the same callvolume. Only $9,000 of that went to AT&T, with XYZ Corp. reaping nearly $16,000in new revenue. It was a truly multi-layered success story, richly benefitingboth customer and XYZ Corp., and made all the sweeter by the intra-companynature of the deal. 

BSMin Alabama quickly followed suit and realized $20,000 inmonthly savings. Ward paints a truly impressive “big picture” of the ultimateregional impact for XYZ: “XYZ Mobility has estimated that, when Option 800 isfully implemented across the nine-state region, they will save $1 millionmonthly in 800 long-distance expense over their currentprovider. In Tennessee, they expect a savings a$360,000 a year. XYZ will see $2.4 million in new revenue as a result of thissale.”

Seek aSolution!

Whilethe clear success story is a significant reduction in customer expenses and anincrease in XYZ Corp. revenues, Warren points out another successangle: more proactive employees. Though perhaps less obvious, it bodes well forXYZ Corp. in these much more competitive times. Warren explains, “While it’s mucheasier to just keep writing the check every month, we made a decision at themarket level to find a solution. When that first bill came in, we were OK. More than OK.” 

AndWarren points out what truly sets Option 800 apart fromother company revenue generators: “Usually, when you implement a change thatresults in savings of this magnitude, it’s because you’ve altered a process,and that usually impacts the customer. In this case, we not only achieveddramatic savings, but more importantly, it’s completely transparent to thecustomer. For a company focused on customer satisfaction, that’s something tobe proud of.”

BestProspects? 

Wardsees big opportunities on the horizon: “There are a significant number ofcustomers out there who could use and benefit from Option 800 that we haven’ttalked to yet.” Who are the best prospects? According to Ward, a key market iscall centers in major metropolitan areas and in just about every industry -retail, banking, hospitality, medical and others. Additionally, Ward seesOption 800 as a more convenient and secure option forany business that has a team in field that must call into an office regularly.

Butthat’s just the beginning. Ward cites a very different kind of business:American Freightways in Nashville who slashed their 800 longdistance bill a staggering 52% - roughly $10k a month. As Ward points out,“That’s $120,000 a year. They could hire an employee for that, pay some healthybonuses, or just buy a lot of truck tires. Plain and simple, toll product willmake a significant positive impact on your customer’s bottom line.” He quicklyadds, “And it’s a great service for retiring sales revenue commitments.”

Lay the LDFoundation Now

Insummary, Ward notes, “Customers who’ve purchased this product have beendelighted and that goes a long way toward cementing the relationship betweenthe customer and the account team.” And as welcome and positive as that is,Ward takes a longer view, observing, “Option 800 service has positioned XYZCorp. as the customer’s first choice for service. And since we’re going to bein the long distance business someday, selling local 800 is an excellentstrategy for opening the door to future toll opportunities.”

END